SAN FRANCISCO PUBLIC LIBRARY 3 1223 07128 9301 Jkc/sco Public Library imen! information Center lancisco Public Library ftk'm Street, 5th Floor ancisco, CA 94102 IRENCE BOOK taken from the Library Public Library -- Gov't Docs. Dcpt. # 41 :st Six Months in Office jr Frank M. Jordan July 8,1992 DOCUMENTS nFPT. JUL 1 3 1992 SAN FRANCISCO PUBLIC LIBRARY wR ■p =FH I Ml I I 3 1223 07128 9301 Public Library -- Gov't Docs. Ik.pl. # 41 Report: First Six Months in Office Mayor Frank M. Jordan July 8, 1992 DOCUMENTS riFp-r. JUL 1 3 1992 SAN FRANCISCO PUBLIC LIBRARY INTRODUCTION Mayor Frank M. Jordan July 8, 1992 This marks my first full assessment of the progress to date of my administration, a practice which I shall continue every six months during my term in office. When I campaigned for office in 1991, 1 promised to be candid and accountable. That is the intent of this report. The document features detailed reports by members of my staff, who are prepared to offer additional information. Their names and office telephone numbers are included. In fact, as of this date I have not met all my goals as Mayor. We have, however, established our priorities, and we are moving forward with them. We have made progress in these first six months, but not enough progress. Much more needs to be accomplished - and this administration will do it. Some of what has been achieved in these first six months began under my predecessor, Art Agnos — the final designation in late May of San Francisco as a State Enterprise Zone, for example. It should add to the economic potential of the city. We will take full credit, however, for other accomplishments, such as the June 30th decision by McKesson Corporation to renew its lease for 15 years of its downtown corporate headquarters building . McKesson employs about 650 people at its headquarters. Last year it paid nearly $1 million in taxes to the City. My administration will also take credit for doubling street cleaning in the Tenderloin, South of Market and the Inner Mission districts. In addition, we have secured the necessary funding for the placement of hundreds more litter receptacles throughout the City. I have unveiled an ordinance outlawing aggressive panhandling, as well as a public education campaign, "Project Helping Hand," which will assist the homeless by channeling charitable contributions toward proven service providers. The City's Workfare program has been expanded to include more General Assistance recipients taking an active role to help clean our streets. And I took a tough, no-nonsense stand in the face of the very real threat of widescale destruction and violence, declaring a state of emergency and imposing a strict curfew when looting broke out in San Francisco after the Rodney King verdict. In the six months that I've been Mayor, no issue -- no challenge - has more occupied my time than the City Budget for Fiscal Year 1992-93. My administration inherited a $61 million deficit that, because of a deep and on-going recession, skyrocketed to a $175 million budgetary shortfall. On June 1st, I personally submitted to the Board of Supervisors a delicately balanced budget made possible only because many groups and individuals made sacrifices, political and otherwise. I, too, made one of those sacrifices. When I campaigned for office, I firmly stated that I would not seek to raise taxes. The reality of the budget crisis, however, coupled with the very real prospect of severe cuts in vital city services, forced me to break that promise. The commercial utility users' tax on businesses — not residents — will be increased for one year, after which it will be eliminated under an explicit sunset provision. The final version of my budget meant no reduction in AIDS services, no libraries or health clinics closed, no Muni lines abandoned, and no reduction in police or other emergency services on our streets. However, as of this date, the City's budget crisis is far from over. The Board of Supervisors still has to take action on the City budget. Hearings by the Finance Committee will be completed tomorrow, and the full Board is scheduled to vote on Monday, July 20th. Also underway is the tough negotiating in Sacramento over the State Budget. San Francisco, like every other California municipality, is very likely to suffer from the final State Budget. Planning is already underway for what will likely be cuts unprecedented in our history. As soon as the State Budget is concluded, and therefore we know the precise impact on San Francisco's own fiscal situation, I will immediately meet with Board of Supervisors President Kevin Shelley and Supervisor Jim Gonzalez, Chair of the Finance Committee, to deal with what threatens to be a fiscal crisis unparalleled since the Great Depression of the 1930's. I campaigned — and restated my pledge in my inaugural address — on building bridges in San Francisco, toward bringing together the diversity of the city for the good of the entire city. I believe that in the last six months, we have made progress, but it's only a start. We still do not have the healthy mix that I want, including on my own staff. I am pleased, however, that I have had the opportunity to attend on a regular basis unorchestrated neighborhood meetings — to allow for direct, two-way communication with San Franciscans. I shall continue to do so. I also place importance on making myself accessible to the news media for unrestricted questioning. I have not yet completed my realignment of the various commissions and departments. That will come soon and will reflect the full diversity of San Francisco. Obviously, at the beginning of my term I could have simply fired many department heads and commissioners in a "slash-and-burn" political style. But I did not. Instead, I chose a more logical approach: Let those serving on the commissions and in the departments first 3 1223 07128 9301 demonstrate their abilities to meet my standards, particularly with regard to developing a balanced City Budget. I willingly accept the fact that there have been some growing pains in these first six months of my administration -- widely reported growing pains. I was elected to make tough decisions in tough times. I will continue to make those tough decisions. C&& *f.^&- STATUS OF KEY ISSUES The following outlines the status of several key issues and programs which served as the platform for Mayor Jordan's campaign. In some areas, significant progress has been made, in other areas there is still a long way to go, and there are some programs that are simply not possible to achieve. CLEAN CITY ISSUES 1 Improve the Cleanliness of San Francisco's Streets The following outlines the status of several programs implemented and supported by Mayor Jordan designed to clean up the City: • 60% Increase in the Workfare Program. Cleaning service was doubled in the Tenderloin, South of Market and Inner Mission. • Implementation of seven-day-a-week mechanical cleaning on Mission Street from Embarcadero south to the County Line. • Expansion of mechanical flushing. Now includes all of Mission and Haight Streets, in addition to the current Downtown effort. • Have identified funding for placement of 300 litter receptacles. 200 from Office of Community Development, 100 from Convention and Visitors Bureau and interest by Wells Fargo Bank for possibly another 100. • June 28, kickoff of "Theme Park" cleaning service in Downtown Area and radio- dispatched litter patrols in neighborhood wind pocket zones. This service is for the summer months only, due to limited funding. • Preparation of Master Plan for repositioning of controlled Parking resources. • Summer Youth Program involving 100 youngsters. Coordination this effort with "Neighbors for Neighborhoods". • Met with Public Health Department's Director of Environmental Health to seek their cooperation on litter abatement enforcement, particularly DPW Section 173, requiring placement of litter receptacles at fast food/take-out establishments. • Improved coordination of volunteer clean-up activities by Clean City Coalition, Neighbors for Neighborhoods, and the Public Works' "Broom Brigade." background provided by Morton Miller, Mayor's Coordinator of Clean City Programs. Page 1 Future Plans: • Expansion of Controlled Parking seven-day-a-week mechanical street cleaning. An effort will be made to downsize service in those areas of the city, where mechanical brooms run down "clean" streets and increase service in the high litter density areas. • Doubling the current Workfare Program. This will entail a seven-day-a-week, city -wide effort in various neighborhoods where litter containment is a major problem. We have met with key management personnel form the Department of Social Services on this matter. Equipment budget details have been worked out to allow for early acquisition of personnel carriers and portable toilets to allow for expansion of Workfare street cleaning activities into the neighborhoods. A special agreement with Laborer's Union Local 261 has been finalized that will reduce the cost of supervision for street cleaning personnel and give them the necessary flexibility to manage the daily personnel changes without instituting a formal Civil Service action. • Will seek additional sources of funds for placement of additional litter receptacles. HOUSING ISSUES^ Consolidate the Housing Authority, the San Francisco Redevelopment, Agency (SFRA), and the Mayor's Office of Housing This consolidation is still under consideration. All three entities are in an area of significant change. The Redevelopment Agencv was originallv formed to participate in a federal program that subsidized the cost of assembling land from multiple ownership. Since the federal government discontinued this program, the main function of the Redevelopment Agency has been to complete projects started under the original federally-funded land assembly programs, i.e., Western Addition and Verba Buena Gardens. In the past few years, the Redevelopment Agency has received approval from the Board of Supervisors to sell bonds which, in large part, have been used to finance subsidized housing throughout the City. These bonds, which can be sold without a city-wide vote approving them, are repaid by the increased property tax revenues generated from redevelopment areas. Under current projections, the ability to sell such tax increment bonds by the Redevelopment Agencv will reach its economic limit in three to four vears. -Background provided bv Ted Dienstfrev. Director. Mayor's Office of Housing. 554- 8780 Page 2 A third function of the Redevelopment Agency is that it can buy and sell property in a more efficient manner than the city. And finally, the Redevelopment Agency has attempted to fund various efforts at economic development in certain targeted neighborhoods. While the economic development program has been developed in response to neighborhood /community input (and that process is an ongoing one), there has not been a rigorous cost-benefit evaluation of its effectiveness. Given the above, the Redevelopment Agency has started preparation of a strategic plan to justify its future role in city government. This planning effort is being overseen by senior staff at the Agency, several commissioners, Supervisor Willie Kennedy, Mayor's Office of Economic Planning and Development Director Kent Sims, and Mayor's Office of Housing Director Ted Dienstfrey. It seems prudent to let this planning effort continue for another six months before a major discussion of the alternatives is undertaken. The Housing Authority administers the 7,000 units of public subsidized housing constructed over the past 40 years, as well as the distribution of Section 8 Certificates (federal guarantees of individual household rent payments). Originally the Housing Authority units were viewed as transitional housing or housing for two or three years for a particular household. Over time, these units have become permanent housing and, in some cases, housing for a second or third generation of the same family. The Mayor's Office of Housing oversees the consolidation of City, state, and federal funds to build subsidized housing. For the past few years, a substantial portion of the funding for each subsidized development came from a state grant. The state grant program has been effectively discontinued for the foreseeable future. Before proceeding to consolidate these three separate entities dealing with different aspects of the subsidized housing market, it is necessary to arrive at a working consensus of what, if anything, we want each entity to accomplish. While consolidation is still a possibility, the more important immediate task is to clearly identify the mission of each entity. Whether consolidation or simply increased coordination is the better alternative remains to be seen. Implement a Gross Receipts Tax on Rental Housing Units to Create an "Affordable Housing Fund" The enactment of any new tax requires broad public support. The gross receipts tax on rental units was proposed by a segment of the rental housing industry as an alternative to vacancy control. Mayor Jordan opposes vacancy control supported this alternative as a candidate as an alternative to vacancy control which would advance the cause of increasing the among of affordable housing stock without causing the disinvestment associated with vacancy control. Page 3 With the fourth defeat of vacancy control legislation at the polls last November, industry support for a gross receipt alternative disappeared. The enactment of a gross receipts tax requires a 2/3 majority from a city-wide vote, and it is highly unlikely such a vote could be achieved. Although Mayor Jordan would support a broadly-based, comprehensive approach to funding subsidized housing, to date the various "players" have not been willing to discuss seriously implementing such a program. Support Resident Management in the City's Public Housing Developments As a candidate, and as Mayor, Frank Jordan continues to support resident management of public housing developments. The first request the Mayor made to the City's Office of Housing was to modify the Comprehensive Affordable Housing Strategy (CHAS) so that the residents could begin the process. This was done. Recently, the Mayor informed HUD that he wholeheartedly supported the resident management applications from: Al North Beach A2 Westbrook A3 Hunters View A4 Bl Alemany Potrero Hill B2 Robert Pitts B3 B4 Sunnydale Holly Court It is important to note that proposals A1-A4 were made without the Housing Authority oversight and proposals B1-B4 were made with the Authority's direction and involvement. The Mayor's Office of Housing is willing to experiment with a number of models to increase resident participation in management, with possible ownership as an eventual goal. Currently, Mayor Jordan is considering utilizing his Director of Housing, Ted Dienstfrey, in the role of facilitator between the developments' residents and the Housing Authority to develop such models. Dismiss Housing Authority Director David Gilmore Gilmore, the Director of the Housing Authority, serves at the pleasure of a term commission — a commission over which Mayor Jordan has limited control under the terms of the Charter. The current commission, which contains no commissioners appointed by the Mayor , recently extended Gilmore's contract through June 1994. Currently, Mayor Jordan has the option to fill one vacancy on the Commission. Page 4 David Gilmore has overseen many improvements in the management of the Authority's developments, including overcoming long-standing debts, reducing the number of vacant units, and getting the Authority removed from HUD's "troubled" list for the first time in 10 years. However, additional progress must be made, and the goal over the next two years is to seek improve the quality of life in the City's public housing developments and to effect decreases in both crime in the developments and the sense of hopelessness among the residents. Increase the Supply of Affordable Housing Historically, the term "affordable" has been used to describe the many programs used to "subsidize" or use direct government funds to provide housing for low and moderate-income households. Recently the City, working with both non-profit and for-profit developers, received over 40% of state funds allocated for subsidized housing. Because of the state's budget crisis, these funds may be lost in the future. While there will be a number of ground breakings in 1993 on new subsidized housing projects, we are working on a new model for financing such projects without state funds. And without a new funding source to replace the state funds, there will be fewer units in 1994 than in 1993. Examples of affordable housing projects currently underway or set to begin in 1993 include the Tenderloin Family Development project — a public-private partnership which will provide 175 units of affordable housing, most of which is geared toward families, and the Catholic Charities project, whose funding was recently secured, which will provide 34 units of low-income housing at 7th and Howard. Even in this period of difficult budgeting, Mayor Jordan has firmly maintained his support for subsidized housing. The FY 1992-1993 budget currently before the Board of Supervisors includes more than $15 million of Redevelopment Agency tax increment financing for subsidized housing. Another major source of affordable housing will be Catellus Development's Mission Bay project. Currently the amount of office space and the amount of housing in Mission Bay are fixed by ordinance, as approved by the Board of Supervisors. The current Board-approved development agreement calls for 8,000 housing units, of which 3,000 will be subsidized, or "affordable". The Mayor's Director of Housing currently is developing a plan to fund the subsidized units. This plan must be presented to the Board. The development of any housing at Mission Bay is dependent on two questions: 1. The extent and expense of the mitigation of any toxic condition of the soil at Mission Bay. Before any development occurs, a more comprehensive environmental program must be developed. Page 5 2. The revival of the commercial real estate market in San Francisco. The assumption has heretofore been that increased property taxes from office development would pay for the subsidized housing. CITY PLANNING ISSUES 3 Streamline the City 's Cumbersome Planning Process On March 17, 1992, Mayor Jordan appointed a new Planning Commission and issued a strong mandate for change at the Planning Department. Highlights of the mandate include: creating a "one-stop shop" for permit processing; increasing the efficiency of the permit review activities so that no backlogs develop; establishing clear policies and guidelines with respect to building additions and new construction in order to reduce the number of Discretionary Review requests; shortening the time required, or in some cases even the necessity, for environmental review; bringing potentially controversial projects before the Planning Commission for an informal "early read" so that appropriate modifications can be made before too much time and effort is spent analyzing projects that may require major revisions. Following are programs that have been implemented since the issuance of the mandate. • Permit Processing: A new One-Stop Construction Services Center was opened on June 1st in cooperation with the Bureau of Building Inspection. More than 1,000 people used this service in the first month. There are currently no backlogs in permit processing. • Environmental Review and Approval of Major Projects: The EIR for a major COSTCO retail outlet was certified and the project was approved. This new store will provide 70 retail jobs and more than $2 million in tax revenues to San Francisco. COSTCO also committed to a contribution of $80,000 a year for the next 60 years to support affordable housing. The EIR for the new Main Library was certified and the project was approved. The EIR for the $2 billion San Francisco International Airport Expansion Master Plan was certified by the Planning Commission, allowing the further background provided by Lu Blazej, director of the City Planning Department, 558- 6411 Page 6 consideration of the plan for the Airport Commission to move forward with the project. • Major New City Planning Efforts: The City Planning Department, in conjunction with the Chief Administrative Officer, has completed the preparation of several preliminary design alternatives for the new Embarcadero plaza and roadway in front of the Ferry Building. A citizens' committee, involving several hundred people, is participating in this effort. City Planning has initiated a planning effort in response to the demolition of the Central Freeway. A land use and transportation plan is currently underway in cooperation with other City agencies. An updated plan for the Bayview-Hunters Point neighborhood is near completion. Several significant studies and reports have been published, including: Review of Seismic Information for San Francisco (February 1992); Commerce and Industry Inventory for San Francisco (June 1992); and Changes in Housing Inventory (June 1992). City Planning is reinitiating the Residential Conservation Zoning effort which will provide new zoning rules and design guidelines for San Francisco's neighborhoods and will bring greater predictability for neighbors and those wishing to add to their homes or build new ones. The department is also making progress in the computerization of the department's record keeping and permit processing systems, which will provide faster and more efficient permit processing and information retrieval services. SOCIAL PROGRAMS Improve and Expand Homeless Services 4 As a candidate for mayor, Frank Jordan pledged to expand homeless services. He pledged to phase out Multi-Service Centers; implement a Workfare program which requires able-bodied homeless people to "meet the City halfway" and help solve some of our other urban problems, such as cleaning the streets and removing background submitted by Lawrence Cruz, Mayor's Coordinator of Homeless Programs. 554-6555 Page 1 graffiti from the buses. He also pledged to discourage aggressive panhandling in San Francisco. The following outlines the status of key aspects of that homeless policy: • Aggressive Panhandling Ordinance: Mayor Jordan asked Supervisor Bill Maher to introduce a strong anti-aggressive panhandling ordinance. If it is not adopted, it will be placed on the November ballot. The ordinance outlaws aggressive panhandling and authorizes police to arrest persons engaged in coercive and threatening conduct while accosting passersby for handouts. The penalty for aggressive panhandling may be a fine, a jail term, or a work alternative program. • "Project Helping Hand:" "Project Helping Hand" is a cooperative public awareness campaign with local merchants, the business community, and the Mayor's Office initiated to discourage people from giving money directly to panhandlers, and to encourage them instead to give to the Mayor's Homeless Fund or other homeless charities. • Mobile Van Program: A mobile outreach van program, which will provide emergency treatment and transportation to help get the chronically homeless off our streets, will begin in mid-July. Funds for the purchase of a van were granted by the Koret Foundation. The Departments of Health, Social Services, and other service providers will augment and coordinate existing outreach and social services with this new program. • Increased City support for community-based clinics for alcoholics and substance abusers: The Fell Street Drop-In Center was approved with minimum community opposition and will provide access to existing substance abuse programs. A neighborhood advisory committee has been established to minimize any negative effects this center might have on the neighborhood. Additionally, through Congresswoman Nancy Pelosi's effort and the efforts of the previous administration, the City has received $4 million federal grant for a medical detoxification and transitional housing program for substance abusers. A site for the detox center currently is being selected, and the program will begin operation in 1993. • $3 million has been set aside as matching funds for transitional housing for the homeless. These funds will be matched by federal McKinney Act monies. Page 8 • The City has been granted $3.5 million for housing for homeless persons with AIDS from the federal government — a process which began under the previous administration. • Workfare programs: Workfare has been increased to assign GA recipients to help clean the streets as part of the Clean City campaign. This expansion will begin in August and will include the participation of workers in the General Assistance Training Employment Services program, an employment training program administered by DSS. (For detailed information see the Clean City Programs section.) Future Homeless Efforts: • A supplemental is being prepared by the Public Guardian's office to establish a County Veterans' Services Office in San Francisco. This office will process claims for homeless veterans who may be eligible for veterans' benefits. This is partially reimbursed by the State Department of Veteran Affairs. This program will help reduce the General Assistance rolls. • An expansion is planned of the Modified Payment and the Representative Payee programs to help stabilize the physically and mentally ill who currently receive governmental entitlements is being designed. • The computerization of the emergency services for the purpose of shelter referral, data base collection, and centralized intake services is being actively pursued. The Mayor's Office is securing donations of computer hardware, software, and training from the private sector. • To ameliorate the effects of large numbers of homeless on the streets, public toilets and storage lockers are needed. Discussions with Department of Public Works, Recreation and Park, the Parking and Traffic Department, and the private sector to open and expand public toilets and other facilities are underway. • Discussions with the corporate and public sectors will be aggressively pursued to advocate for more jobs and economic development opportunities for the employable homeless. • Ongoing efforts to identify funds for the development of low-income, affordable housing, and supportive housing will be made. Coordination with the Mayor's Office of Economic Planning and Development, the Redevelopment Agency, and the Interagency Housing Agency Taskforce will continue. It is important to note that the Mayor's 1992-1993 budget maintained the level of funding for the homeless programs in the Departments of Health and Social Services; no cuts were proposed. However, if state proposals for cuts in AFDC are Page 9 achieved pass and the state mandate for General Assistance is removed, along with other health and welfare cuts, there will be a significant increase in homeless families and persons in San Francisco. And, given the expected resultant fiscal constraints, it will also be very difficult to maintain the present level of funding for homeless programs generally. Increase Funding for Job Skills Training for the Homeless, the Poor , and Youth 5 As a candidate, Frank Jordan pledged to increase funding for job skill training for the homeless, the poor, and the City's youth. Mayor Jordan has maintained and, in some areas, increased job opportunities and training for youth through the Office of Children Youth and Families. Some of the programs available for youth include the Private Industry Council's (PIC) Summer Youth Employment and Training Program, which serves approximately 2,000 low-income youth from throughout the City; the Summer Jobs Program, a joint effort of the Mayor's Office, the PIC, and the state Employment Development Department. It provides private sector employment opportunities to young people 16-24 years of age; The Recreation and Park Department's "Workreation" Program, which provides a minimum wage opportunities to 200 young people; PIC -STEP, which provides summer employment and year-round counseling to low-income young people transitioning from middle school to high school. Implement a Needle Exchange Program to Reduce the Spread of HIV 6 During the mayoral campaign, Frank Jordan promised to take a leading role on behalf of the citizens of the City and County of San Francisco in combatting the Hrv/ AIDS epidemic and in stopping the spread of PIIV and AIDS. Part of his program was to legalize and implement needle exchange programs. Mayor Jordan has actively lobbied on behalf of two bills currently in the State Legislature that would legalize needle exchange. He has personally testified on behalf of the the legislation and lobbied with Governor Wilson to ask for his support should the bills pass. Additionally, Mayor Jordan, in numerous letters and speeches, has advocated for needle exchange programs with community organizations, elected officials, and medical experts. 5 Background provided by Anthony Lincoln, director of Mayor's Office of Children, Youth and Families, 554-8990 background provided by Jean Harris, special assistant to the Mayor, 554-6154 Page 10 Expand AIDS Services and Obtain the Necessary Funding 7 In June, Mayor Jordan went to Washington, D.C., to testify before Senator Edward Kennedy's Labor and Human Services Committee on behalf of San Francisco and the U.S. Conference of Mayors to lobby for full funding of the Ryan White Care Act. The Ryan White Care Act could provide millions of dollars in funds for providing life-prolonging care and treatment services to more than 5,000 people with HIV in San Francisco. With regard to the City's proposed budget for the coming fiscal year, Mayor Jordan has not cut AIDS services. And in fact, the 1992-1993 budget included some additional funding for services for which there is no federal or state support. TRANSPORTATION ISSUES** Get Traffic Moving Again by Addressing the Problems Created by the 1989 Loma Prieta Earthquake One of the main priorities Frank Jordan set forth as a candidate was getting traffic moving again in key areas by addressing the problems created by the 1989 Loma Prieta Earthquake. Damage occurred to portions of all the highways which run through central San Francisco, including JTighways 480, 1-280, and US101-- the Central Freeway. It has been over two and a half years since the earthquake, and San Francisco does not have one of these freeways restored to fully operational. Mayor Jordan, working closely with Chief Administrative Officer Rudy Nothenberg, has met with Caltrans officials to review all of its projects and timelines in the city. Because the Mayor was not satisfied with the timelines presented by Caltrans, he has been urging them to move forward on their projects to open up these roadways. 1-280: Work on five of nine portions began this Spring. The entire freeway is scheduled to be open by early 1994. Caltrans has informed Mayor Jordan that one lane, and possibly two lanes, of traffic will be open by the end of this year. 7 Background provided by Jean Harris, special assistant to the Mayor, 554-6154 background provided by Stuart Sunshine, special assistant to the Mayor, 554-6181 Page 1 1 Central Freeway: The City is in the process of selecting a replacement alternative for the northern portion of the Central Freeway from Fell Street north to Turk. Mayor Jordan has taken the position of a "no-build" policy for this portion of the freeway. This position, which was recently approved by the Board of Supervisors, not only will provide close to six acres of land for housing, but will liberate the Hayes Valley neighborhood. Upward of 500 units of new housing in a mix-use development can be built on this site. San Francisco does not intend to get into the business of building freeways. Instead, the city will seek the retrofit equivalant funds from the emergency relief fund and use the money for surface street improvements, which may include such features as a central traffic control signal system for this particular corridor which can be expanded city-wide if successful. Mid-Embarcadero Roadway Project- The city currently is in the environmental phase of analysis for the middle portion of the replacement roadway. The selection of the alternatives for environmental review should be completed by the end of this summer. Preliminary costs and construction schedules for the alternatives have been released. Mayor Jordan is concerned that the State's time schedule is too slow and the costs are too high. Currently, $149 million has been identified for potential funding sources for this portion of the project. This total includes federal, state, and local funding sources. The Mayor's position remains the same as it did six months ago: to reopen this section of our city to traffic as soon as possible, providing we've considered the best way to move traffic, transit, bicycles, and pedestrians, while maintaining and preserving a good balance of open space and urban design. Bring BART to the Airport As a candidate, Jordan campaigned to bring BART directly to the airport. Presently, $586 million in federal assistance is available for the extension from the Colma Station down the Peninsula. The majority of this project will be paid for by the Federal Government through ISTEA funds, with the remainder to come from a San Mateo County-wide sales tax, which was passed specifically to expand BART service to that county. A combined transportation center, west of Flighway 101, will link the airport light rail system, which will ring both the departure and arrival decks of the airport, Caltrain, and BART. An additional $400 million would be needed for bringing BART directly into the airport. For now, the region should take advantage of the federal funds available for the project. Page 12 Extend Light Rail to the Bayshore Corridor The scope of study has been completed, and a request for proposals has been issued. In 1989, Proposition B, the city's half cent sales tax for transportation was passed by the voters. It provided $100 million for a transit system along the Bayshore corridor. The Bayshore Corridor is currently underserved by mass transit. When Mayor Jordan took office in January 1992, he immediately moved to seek the Transportation Authority Commission's support to allocate funds for preliminary scoping for the proposed Muni Metro extension. Increase the Supply of Off-Street Parking 9 In 1992, the City has moved forward on construction of the greatest number of off- street parking project since 1950. The following outlines the status of some of these projects: • Continued construction of Polk/Bush Garage, a 132-space, 6-level parking garage with 3700 square feet of ground floor commercial space. • Began seismic retrofit and expansion of the Ellis-O'Farrell Garage; expanding the current facility from 912 to 1,288 spaces. Project scheduled for completion prior to 1992 Holiday shopping season. • Continued design of seismic retrofit and expansion of Fifth and Mission Garage from 1,782 spaces to 2,622 spaces. Construction to begin January 1993. • Acquired property for Vallejo-Churchill Garage, a 300 space facility in Chinatown/North Beach. • Completed refurbishment and security improvements at the 16th and Hoff metered garage. PUBLIC SAFETY Expand CPOP Program The Police Department will continue to maintain a strong presence in the Tenderloin District and will expand the CPOP program throughout San Francisco. background provided by Tim Johnson, acting director, the Department of Parking and Traffic, 554-9823 Page 13 Bring the Police Department up to its full authorized strength Mayor Jordan's budget for FY 1992-93 included one academy class and made provisions to assure a full complement of police officers on the street. In looking for a new police chief, Mayor Jordan will look for someone who will maximize the departments resources and manage the departments resources to assure that the City is a safe place to live. Additionally, even with the deficit, funds were included for a new class of 911 dispatchers and the department is looking at ways to improve telephone response times and working conditions of 911 dispatchers. Violent behavior and willful destruction of property during protests will not be tolerated The right to demonstrate is a cherished right, but a delicate balance must be found to ensure the safety of all citizens and protection of private property. No incident symbolizes this issue more than the aftermath of the Rodney King verdict. When the protest turned to looting following the verdict, Mayor Jordan immediately issued a state of emergency in San Francisco and imposed a curfew for two nights. More than 2,000 arrests were made. Although several downtown merchants incurred significant property damage and looting on the first night of protests, the strict enforcement of the curfews and the imposition of an emergency declaration enabled the city to react quickly and to ward off any further looting on subsequent days. SAN FRANCISCO GIANTS Keep the Giants in San Francisco Immediately following the defeat of the San Jose initiative to construct a new home for the Giants, Mayor Jordan appointed Walter Shorenstein to head a small negotiating committee that is working with potential investors to acquire the team and/or develop a ballpark. Mayor Jordan has personally met with Giants owner Bob Lurie and members of the team's management, as well as with Baseball Commissioner Fay Vincent, to reinforce his goal to keep the Giants in San Francisco. The Mayor's Office has also been working with Supervisor Angela Alioto's Ballpark Advisory Committee on plans for a ballpark site. Page 14 HUNTERS POINT NAVAL SHIPYARD ISSUES'O Develop the Hunters Point naval Shipyard in a manner that strengthens the local economy while ensuring jobs and input to local residents The Mayor's Office of Economic Planning and Development is currently moving to successfully conclude lease negotiations with the United States Navy to bring the 500-acre former naval shipyard under City ownership and control. The City's objectives in the lease negotiations are to maximize the long-term economic benefits to the City and to the Bayview Hunters Point community; to protect the City's short-run financial interests; and to assist and stabilize existing shipyard tenants. Among the strategies being pursued for the shipyard are the following: reach a lease agreement with the Navy that assures the City will cover public safety expenses with Shipyard revenues on, at least, a breakeven basis; assure that the City has no toxic liability for existing environmental conditions; develop a master land use plan that maximizes economic benefits to both the City and the surrounding communities. The Mayor's Office of Economic Planning and Development and the San Francisco Redevelopment Agency have been leading the Hunters Point Naval Shipyard lease negotiations with the Navy, with the support of an intra-department task force that includes the City Attorney, the departments of Public Health and City Planning, and the Port. For Hunters Point, the City and the Navy are pioneering the concept of "parcelization" — full toxic clean-up scheduled on a parcel-by-parcel basis, rather than full site clean-up on a "worst first" basis. Parcelization will clean up Hunters Point one section at a time, and will enable the City to develop and put to productive use land as it comes available in developable parcels. If we were to follow the standard practice of full clean-up before accepting retrocession, Hunters Point would remain unusable- and a severe drain on City resources-- until at least 2010. Mayor Jordan is expanding the Hunters Point Shipyard Citizens' Advisory Committee to continue to fully advise him on specific needs of the Bayview Hunters Point Community that should be considered in developing a land use plan; city-wide needs; the needs of current shipyard tenants (including the artists colony); and ways to reconcile competing interests within the framework of proposals for the property. The membership of the Citizens' Advisory Committee is quite diverse and includes representatives from the Bayview Hunters Point neighborhood, the 10 Background provided by Ron Blatman, Director of Business Development, Mayor's Office of Planning and Economic Development, 554-6478. Page 15 business community, the maritime industry, current shipyard tenants, and organized labor. The first of a series of public hearings on the future of the Shipyard was held this week to facilitate public input on the development of a master plan for the site. PORT OF SAN FRANCISCO ISSUES" Revitalize the Port of San Francisco As a candidate for Mayor, Frank Jordan pledged to revitalize the Port of San Francisco. Presently, the Port is in the midst of a comprehensive land use planning process that seeks to balance commercial development, recreation, and maritime uses, a process mandated under Proposition H. Mayor Jordan will continue to support the Port's efforts to improve its economic posture. Some of the projects on which the Mayor's Office of Economic Planning and Development is assisting the Port include: Fisherman's Wharf: • The Jordan Administration is continuing the previous administration's support for improvements of Pier 45's fish handling facility, as well as an 88-berth expansion of the Hyde Street Pier, both of which are currently underway. • The Mayor's Office is working with Redevelopment, Planning, and Port officials on the long-term proposals for the Fisherman's Wharf Triangle. Mayor Jordan has supported Alioto's marketplace proposal for the Fisherman's Wharf Triangle and it is currently moving forward. • Pier 39: Mayor Jordan continues to support Underwater World, the waterfront aquarium plan which began under the previous administration. • Pier 35: The Mayor's Office has been monitoring the Pier 35 RFP process to upgrade the current cruise terminal. • Ferry Building: The Mayor's Office has encouraged the Port to accelerate plans for the renovation of the historic ferry Building at the foot of Market Street. On his recent trip to Washington D.C., Mayor Jordan lobbied on behalf of the Port of San Francisco in support of federal funds for a study of possible improvements that will be necessary to accommodate increased ferry service. The Port is seeking $500,000 to conduct this study 11 Background provided by Ron Blatman, director of Business Development, Mayor's Office of Economic Planning and Development, 554-6478 Page 1 6 • Scandinavia Center The Mayor's Office has been working with the developers of Scandinavia Center to help them secure a fourth investment partner so that the project can proceed as planned. • Ship Repair The Mayor's Office has worked with the ship repair industry to assure their continued viability to the maximum extent possible. In June, Mayor Jordan travelled with a trade delegation of representatives from the ship repair industry, San Francisco's business community, organized labor, and the Board of Supervisors to Washington, D.C. to lobby on behalf of increased ship repair work from the Navy, as well as an increased Naval presence in the Bay Area. The Mayor's Office of Economic Planning and Development has explored having both major San Francisco ship repair firms share drydock facilities at either the Southwest Marine site or at drydock #4 at Hunters Point. The Port also is evaluating the advantages of establishing an independent drydock operation by the Port (open to all ship repair firms) as compared with the current situation of each firm maintaining its own facility. BUSINESS CLIMATE IN SAN FRANCISCO12 Improve the Business Climate in San Francisco and Diversify the Tax Base: As a candidate for Mayor, Frank Jordan pledged to turn San Francisco's anti- business image around. Since taking office, Mayor Jordan has been working to aggressively promote his administration's pro-business attitude, including supporting specific projects that foster economic development, and the strategic planning for further growth and diversification of City's economy. The following outlines steps being taken by Mayor Jordan's Office of Economic Planning and Development to improve the business climate in San Francisco. Business Assistance: • Started under the Agnos Administration, an area which includes two thirds of the City's businesses recently was designated as a State Enterprise Zone. Established with the Enterprise Zone designation are new Enterprise Zone Working Capital Loan Guarantee and Facade Improvement Loan Programs which are expected to come on-line in the near future. 1 background provided by Ron Blatman, director of Business Development, Mayor's Office of Economic Planning and Development, 554-6478 Page 1 7 • Established a Business Assistance Center solely for the purpose of addressing the day-to-day needs of large and small businesses. The Center handles an average of 40 telephone inquiries and 8 walk-ins per day, covering a host of business topics ranging from permitting and general information inquiries to inquiries on licensing and loan applications. • Began the implementation of an Affirmative Action program for the Mission Bay project — the first part of which entails the establishment of a Mission Bay Economic Development Program Board explicitly charged with overseeing the programs in the Mission Bay Affirmative Action Policy as defined in the development agreement with Catellus. Business Development: • Working with the City Planning Department, accelerated EIR approval by five months for the $2 billion Airport expansion project scheduled to begin late 1992. According to the Airport, the move saved the City approximately $11.5 million. • Working with City Planning, assisted in the approval of a new COSTCO outlet in San Francisco, the huge discount chain's first such move into a major urban center. Construction starts this summer. • Assisted the Department of Parking and Traffic in facilitating the Fifth & Mission Garage expansion project, which will provide for 850 new parking stalls. Construction starts January 1993. • Working with the Redevelopment Agency to assist the The Gap in locating and developing a new corporate headquarters site in the City. • Assisting UCSF (the City's second largest employer, after City government) with short-range and long-range expansion plans. A $300 million facilities upgrade and construction of a major cancer center to begin at Mt. Zion Hospital by early 1993. • Assisting the State Bar with major expansion plans. • Working with State of California economic consultants on State facilities located within San Francisco — including new and renovated structures. • Working on locating a major new Federal building complex to San Francisco which will retain more than 4,000 local jobs. • Assisting Pacific Center developers with plans for major new retail center at 4th and Market Streets. Page 18 • Working with the Redevelopment Agency on the plans and RFP for the Yerba Buena entertainment complex at 4th and Mission Streets. • Assisted METADesign (based in Berlin, Germany) in establishing its first U.S. office, which opened in June in downtown San Francisco. Other results of the change in the business climate include: Wells Fargo's decision to maintain existing San Francisco operations and delay possible move of back office operations to Sacramento. McKesson's decision to maintain its corporate headquarters in San Francisco. Bank of America's continued commitment to the City following its recent merger with Security Pacific Bank. Simpson Paper's expanded headquarters presence. Potlatch's renewal of headquarters space. Homestake Mining's expanded headquarters presence. IBM's decision to consolidate West Coast administrative functions in San Francisco. San Francisco recapturing role as West Coast's premier financial center (three of California's four largest banks are headquartered here); increased investment banking presence — new or expanded facilities for local firms such as Montgomery Securities (new trading floors); Robertson, Stephens & Co. (new headquarters); and national firms including Morgan Stanley (moved public finance division form LA); Goldman Sachs (moved some operations from LA); Alex Brown (established new western region based in SF); J.P. Morgan (new trading operations & expanded west coast base); Merrill Lynch (consolidated west coast sales & trading operation): Smith Barney (looking for new expanded space); Donaldson Lufkin, & Jenrette (looking for new expanded space); Dillon Read (moved expanded west coast office from Palo Alto back to SF); Prudential Securities (looking for new expanded space). MOEPD is also working to attract additional foreign government offices to San Francisco. Results so far include: a new Belgian Trade Office opened February 1992; a Korean Trade Center to open this summer; a Chilean Trade Office to open this summer; DATAR (Invest in France) to open this summer in French Trade Commission offices. MOEPD is working to open an Italian Trade Commission office by year-end as well as a Czech Trade Office by the Fall of 1992. Page 19 SFO Marketing: The Mayor's Office of Economic Planning and Development is working with the San Francisco International Airport on marketing SFO to international air carriers. Not only will an expanded international air carrier presence increase trade and tourism opportunities for San Francisco, but also for the entire Bay Area region. The following results have been achieved: • Aeroflot started first SFO-Moscow service in May (currently once a week, going to 4 times weekly within one year). • KLM (Royal Dutch Airlines) has designated SFO its next U.S. gateway. SFO- Amsterdam flights scheduled for June 1993. • Asiana Airlines will start SFO-Seoul flights November 1992. • LACSA expected to start SFO-San Jose, Costa Rica flights summer 1992. • Alitalia expected to choose SFO as next U.S. gateway. SFOTtaly flights would begin 1993. • EVA Airlines expected to start SFO-Taipei flights in 1993. • Virgin Atlantic expected to start SFO-London flights within 12 months. • British Airways expected to double capacity to 2 SFO-London flights daily within 12 months. • United Airlines started SFO-Paris flights this spring, first nonstop SFO (any U.S.) Shanghai flights this summer, doubled capacity to 2 SFO-Hong Kong flights daily this summer, and is looking to double capacity to 2 SFO-London flights daily by early 1993. • Mexicana initiated new nonstop service to Mexico City. ### Page 20 - ■ ■ .